The Benefits of User Identity Verification for Businesses

In a market with an increasing number of cyberattacks and fraud cases, user identity verification is a solution that every business must consider. Unfortunately, ID verification is still seen as a disruption to the user, or customer, journey. Asking users to verify their identity needs to be a seamless part of the process – usually registration or user onboarding process – in order for the measure to work effectively.

Despite the challenges, the security measure is known to be effective in preventing fraud and other malicious activities. When reviewed closely, user identity verification brings a number of key benefits to businesses.

Know Your Customer

Know Your Customer or KYC is a principle that protects businesses from unnecessary risks such as fraud and money laundering. In some industries (i.e. the financial industry), KYC is mandatory by law, meaning every business in the industry must incorporate KYC for security purposes.

Fortunately, KYC doesn’t have to be as disruptive as it used to be. Financial service providers are switching to electronic KYC rather than conventional methods, such as asking for copies of ID and other documentation.

Service providers like Cognito have made ID verification friendlier to users too. Cognito, in particular, offers anti-fraud solutions through ID verification, with APIs and services from the company being designed to work seamlessly with existing apps.

Age Verification

Another benefit of user identity verification is accurate age verification. Once again, some industries prevent the selling of goods and services to customers under a certain age limit. Adding an age gate to online storefronts alone is not enough.

The ID verification API from Cognito can be used for the same purpose. When an age restriction is put in place, the system can warn users – and automatically prevent access to products and services – when they are not old enough as stated in your policy.

Age verification is a positive addition to the user experience as well. You can, for instance, use the validated birth dates to send birthday greetings to customers. The validated date can be fed to automated email marketing automation tools to simplify the process.

Prevents Online Attacks

Certain attack types targeting online businesses rely on fake identity and fraudulent personal details to work. When attackers try to acquire your products and services using a fake or stolen credit card, verifying the specific user’s identity becomes an effective countermeasure.

Attackers who don’t pass the ID verification process will not be able to complete their transactions. Legitimate users with good intention of buying your products and services, on the other hand, will face no difficulties in confirming their identity.

The result is safer business interactions. You are not making it difficult for customers to buy your products and services, but you are also not making it too easy for attackers to defraud your company. The balance between UX and security is struck with the help of solutions like Cognito’s ID verification.

User identity verification offers real benefits that are too valuable to miss. With newer, more reliable solutions supporting ID verification, making the decision to incorporate user identity verification into your business processes (and customer journey) is easier to do.

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